Last month the US Department of Labor (Department) issued an Information Letter stating that it is possible for individual account plans subject to the Employee Retirement Income Security Act of 1974 (ERISA) to offer limited private equity investments in a manner that complies with ERISA, provided certain suitability issues are considered by plan fiduciaries. The Information Letter confirms that a plan fiduciary would not violate ERISA fiduciary duties “solely because the fiduciary offers a professionally managed asset allocation fund with a private equity component.” Similarly, the Information Letter confirms that fiduciaries may offer private equity as a small component of an ERISA plan’s diversified investment option, like a target date fund, a target risk fund, or a balanced fund.
Archives for July 22, 2020
NLRB Updates Standard on Discipline for Offensive Conduct
Executive Summary: On July 21, 2020, in a unanimous decision, the National Labor Relations Board (“NLRB” or the “Board”) modified the standard for determining whether employees have been lawfully disciplined or discharged after making abusive or offensive statements in the course of activity otherwise protected under the National Labor Relations Act (“NLRA” or the “Act”). See General Motors LLC, 14-CA-197985, 369 NLRB No. 127 (2020). In reaching this decision, the Board announced that all such cases moving forward would be analyzed under the Wright Line standard.
EU-U.S. Privacy Shield Program for Transfer of Personal Data to U.S. Found Invalid
The EU-U.S. Privacy Shield program is invalid, the Court of Justice of the European Union (CJEU) declared on July 16, 2020, in the matter of Data Protection Commissioner v. Facebook Ireland and Schrems (C-311/18) (Schrems II).
Illinois, Chicago, Cook County Issue New COVID-19 Guidance, Restrictions
Illinois, Chicago, and Cook County have issued new guidance and restrictions as COVID-19 cases continue to rise around the country.
Four More Cities in Minnesota Mandate Face Coverings
Four more Minnesota cities and the Minneapolis-Saint Paul International (MSP) Airport are requiring face coverings in indoor public spaces.
Labor Board General Counsel Provides Employer-Friendly Advice During COVID-19 Pandemic
The National Labor Relations Board (NLRB) General Counsel (GC) has weighed in on several COVID-19-related issues under the National Labor Relations Act (NLRA).
Amy Peck Discusses Compliance Implications of Relaxed I-9 Inspection Requirements
Amy Peck discusses the implications of the U.S. Immigration and Customs Enforcement’s extension of relaxed I-9 document inspection requirements during the COVID-19 pandemic and best practices for ensuring continued compliance in “Relaxed Form I-9 Compliance Extended to Aug. 19,” published by SHRM.
Gregg Clifton Discusses Enforceability of COVID-19 Athletic Waivers
Gregg Clifton discusses the enforcement implications of liability waivers provided to student athletes during the COVID-19 pandemic in “Student athlete COVID-19 waivers likely won’t block lawsuits,” published by Business Insurance.
Kathryn Russo Discusses FMCSA Drug Testing Compliance During COVID-19
Kathryn Russo discusses best practices for maintaining compliance with the Federal Motor Carrier Safety Administration’s drug testing requirements despite logistical challenges brought by the COVID-19 pandemic in “FMCSA Continues Exemptions for Drug and Alcohol Testing,” published by EHS Today.
Stefan Marculewicz Appointed to Independent Mexico Labor Expert Board
(July 21, 2020) – Stefan J. Marculewicz, a shareholder in the Washington, D.C. office of Littler, the world’s largest employment and labor law practice representing management, has been appointed to the Independent Mexico Labor Expert Board by House Republican Leader Kevin McCarthy for a six-year term.
Mexico’s COVID-19 Traffic Light Monitoring System: News for the Week of July 20, 2020
As part of its response to COVID-19, the government of Mexico recently introduced a traffic-light monitoring system that classifies states with the help of four criteria that they must meet before proceeding to the next phase of Mexico’s reopening plan. Below is the map indicating the COVID-19 risk level in
Global Solutions Episode 6: Consent to Collect? Processing Employee COVID-19 Data
In addition to the potential uses of contact-tracing apps, discussed recently in episode 1 of the Global Solutions series, most employers now conduct some form of employee screening or monitoring to help prevent the spread of COVID-19 in the workplace and protect staff.
Extended School Closings Create Homework for Employers
You can hear the parents wailing across the country (almost like kindergartners on their first day of school), as states begin to announce their plans to keep physical schools closed or alternate between in-school and virtual classes for the upcoming year. The collective parent wail is outmatched only by that
“Who Was that (Un)masked Man?”: Does the Law Protect Employees and Guests Against Wearing Face Coverings?
“Behind the Mask” is more than just a Fleetwood Mac album. It’s a science-based recommendation by the U.S. Centers for Disease Control and Prevention (CDC), and even a requirement under a patchwork of state and local laws designed to stem the spread of the coronavirus. But what is an
DOL Guidance on ESG Investing by Retirement Plans: Investment Committees Should Handle with Care
The United States Department of Labor (the “DOL”) recently issued a proposed rule on the fiduciary requirements under the federal pension law, ERISA, that apply to the selection and monitoring of environmental, social, and corporate governance (“ESG”) investments in retirement plans. Under the proposed rule, which would be effective 60